But having taught actual final-year law students these concepts, I know it can take a couple of passes before they really sink in. And examples really help. So let's make all of this a little bit more tangible:
Allow me to introduce Alpha, Beta and Gamma, three entrepreneurs who live in the vicinity of Premier University's well-known law school. The school is located on a leafy campus in a quiet neighbourhood of a large city. Though the law school has existed for several decades, the institution has suddenly risen to prominence, and begun attracting a number of students and scholars from outside the state. To accommodate these new arrivals, the school has just constructed additional dormitories, including some that are a short walk from the main campus where the classrooms, canteen and old dormitory are located. Here's a map of Premier Law School.
Within this group of newcomers, it is possible that there are at least two segments. Let's define these roughly as "undergraduates" and "visiting faculty", and let see if we can distinguish them along some parameters. In doing so, we begin to create a couple of well-defined customer personas, each representing a distinct cluster of preferences that can be catered to efficiently.
A market opportunity at Premier Law School
Allow me to introduce Alpha, Beta and Gamma, three entrepreneurs who live in the vicinity of Premier University's well-known law school. The school is located on a leafy campus in a quiet neighbourhood of a large city. Though the law school has existed for several decades, the institution has suddenly risen to prominence, and begun attracting a number of students and scholars from outside the state. To accommodate these new arrivals, the school has just constructed additional dormitories, including some that are a short walk from the main campus where the classrooms, canteen and old dormitory are located. Here's a map of Premier Law School.
For an astute entrepreneur, this new development constitutes a market opportunity namely an influx of potential new customers.
But who are these potential customers? What needs might they have?
First, let's think about demographics: The influx will host both undergraduates, graduate students and visiting faculty. They will be from outside the city, and unfamiliar with local food, customs and language. They are not likely to have their own mode of transport, and their lives will likely revolve around class and campus activities. Their needs will include tools, support and supplies to get them through their degree, but it will also include the need to sustain and enjoy themselves. Alpha and Beta both decide that coffee is the perfect product to sell to this segment, being both an academic/ professional necessity (many teachers and students are unable to handle morning sessions without it) and a social one ("Shall we grab a coffee" works for networking, romance and everything in between.)
Segmenting the market and defining customer personas
Within this group of newcomers, it is possible that there are at least two segments. Let's define these roughly as "undergraduates" and "visiting faculty", and let see if we can distinguish them along some parameters. In doing so, we begin to create a couple of well-defined customer personas, each representing a distinct cluster of preferences that can be catered to efficiently.
| Undergraduates | Visiting Faculty | |
|---|---|---|
| How old are they? | 17 to 21 | 35+ |
| What is their disposable income? | Very tight budget | Varies from medium to high |
| When will they want a coffee? | Anytime, including late night | Office hours, evenings |
| Physical location requirements | Convenience | Ambience |
| Taste/Quality requirements | Higher caffeine | Better taste |
Alpha and Beta both decide to start selling coffee near the campus. Alpha finds a spot near the gate to the new dormitories, a crowded corner with no seating or protection from the sun, but right on the path between the dormitories and the main campus. Beta lays claim to a spot a little further away under a large tree, which is much more pleasant and has space for a few stools and chairs.
Meanwhile Gamma spots a secondary opportunity. With Alpha and Beta now selling coffee near campus, there is a need for an additional supply of coffee beans. Gamma knows that it will be expensive and inconvenient for Alpha and Beta to head into the city centre and carry heavy bags of coffee back to campus, and so Gamma decides to go into business as a coffee supplier to Alpha and Beta. He finds a wholesaler in the city, and arranges to borrow a car once a week.
With this little ecosystem taking shape, let us proceed.
With this little ecosystem taking shape, let us proceed.